Norwegian chemical tanker operator Odfjell has secured two additional 40,000 dwt stainless steel chemical tanker newbuildings at Japan's Kitanihon Shipbuilding, with delivery scheduled for 2029. The agreements, arranged on a long-term time charter basis, bring another two vessels into the company's fleet renewal programme, alongside four similar vessels it agreed to acquire earlier this year.

Two More Japanese-Built Chemical Tankers

Odfjell disclosed the agreements in its third-quarter 2026 report on November 4. The two vessels will be built by Kitanihon Shipbuilding in Japan and are scheduled to enter service under long-term time charter arrangements in 2029.

The company has not disclosed the identity of the shipowner counterparties, the charter rates or the duration of the agreements.

Both vessels will be 40,000 dwt stainless steel chemical tankers, belonging to the specialised super-segregator segment. These ships are designed to carry multiple grades of liquid chemicals simultaneously, with individual cargoes kept separate in dedicated tanks.

The latest agreements follow Odfjell's April 2026 decision to acquire four 40,000 dwt stainless steel newbuildings from a Japanese shipowner. Those vessels are also being constructed at Kitanihon Shipbuilding, with deliveries scheduled between the first quarter of 2027 and the second quarter of 2029.

The four-vessel acquisition was valued at approximately US$290 million.

A Combination of Ownership and Chartering

The two transactions illustrate Odfjell's use of different fleet investment structures.

Under the April agreement, Odfjell will acquire ownership of four vessels, committing approximately US$290 million to the newbuildings. Under the latest agreements, the company will instead take the two additional vessels on long-term time charter.

The distinction is important. An owned newbuilding requires capital investment during construction and adds a vessel to the company's owned asset base. A time-chartered vessel allows the operator to secure additional carrying capacity without directly financing the ship's construction, although it creates a long-term contractual payment obligation.

By combining the two approaches, Odfjell can expand its access to modern tonnage while managing the balance between capital expenditure and charter commitments.

Fleet Renewal and Older Vessel Disposals

The latest newbuilding commitments come alongside the company's disposal of older vessels.

Following the end of the third quarter, Odfjell agreed to sell two 15-year-old coated chemical tankers, Bow Elm and Bow Lind. The sales are expected to generate a capital gain of US$9.6 million and a positive net cash effect of approximately US$34.7 million.

The transactions form part of a broader fleet renewal programme that includes the introduction of new stainless steel tonnage and the retirement of older vessels.

At September 30, 2026, Odfjell operated 77 chemical tankers with a combined deadweight capacity of approximately 2.7 million tonnes. Its newbuilding orderbook stood at 18 vessels at the end of the third quarter. The subsequent agreements for two additional 40,000 dwt vessels expand that pipeline further.

Third-Quarter Performance

Odfjell's fleet investment programme is taking place against a changing chemical tanker market.

For the third quarter of 2026, the company reported time charter earnings of US$192 million, compared with US$195 million in the second quarter. Time charter equivalent (TCE) earnings averaged US$27,892 per day, down from US$29,486 in the previous quarter.

EBIT declined to US$59 million from US$69 million, while the group's net result was US$40 million, compared with US$54 million in the second quarter.

Despite softer spot market conditions, Odfjell transported 3.6 million tonnes of cargo during the quarter, its highest quarterly volume since 2022, according to its results report.

The company noted that global seaborne chemical volumes remained below pre-conflict levels. However, vegetable oil and biofuel shipments helped compensate for weaker chemical cargo volumes. Stronger MR tanker earnings also limited the availability of vessels switching into chemical trades, supporting freight rates.

The Japanese Shipbuilding Connection

Kitanihon Shipbuilding has become an important partner in Odfjell's latest stainless steel fleet expansion.

The Japanese yard is building both the four vessels acquired in April and the two additional vessels secured on long-term time charter. This means six 40,000 dwt stainless steel chemical tankers associated with Odfjell's latest expansion programme are being constructed at the same Japanese shipyard.

The four owned vessels are scheduled for delivery between the first quarter of 2027 and the second quarter of 2029, while the two chartered vessels are expected in 2029.

The concentration of these newbuildings at one shipyard also provides a clear example of the continuing role of Japanese shipbuilders in the specialised stainless steel chemical tanker segment.

For Odfjell, the programme will introduce six additional vessels of the same broad size and material category, although their ownership structures will differ.

The next milestones to watch are the construction progress and delivery schedules of the six vessels, the terms of the two new charter agreements, and how quickly the incoming tonnage replaces older ships within Odfjell's operating fleet.